CASURECO III P102 Million in debt; 66,000 plunged to darkness

Submitted by Vox Bikol on Wed, 10/02/2013 - 19:57

NABUA,Camarines Sur (Oct 2, 2013) - Camarines Sur 5th District Congressman Salvio Fortuno has his hands full brokering an agreement between the mayors of Rinconada and power provider San Miguel Energy Corp. (SMEC) aiming to end the 3-day old power outage in the area serviced by the Camarines Sur Electric Cooperative III (CASURECO III).

Because of  unpaid arrears amounting to Php102 Million, SMEC cut off power supply to CASURECO III, plunging to darkness 66,000 consumers in 6 municipalities and 1 city on Monday (Sep. 30).

Fortuno told local newsmen on Tuesday (Oct.1) that he urged all 7 mayors in his congressional district to sign a compromise agreement with power provider (SMEC).  The proposal on the table is for the electric cooperative to pay part of the current bill amounting to Php40 Million and pay the Php60 Million  balance within 6 months. This proposal submitted earlier by CASURECO III had been rejected by SMEC, but with the mayors as guarantors,  Fortuno is optimistic that it would be acceptable to the power provider. A contract agreement was signed by the mayor s in a meeting at the Macagang Hotel in Nabua and already to sent to SMEC.

Fortuno said that at the same meeting it was learned that CASURECO III’s collection efficiency is only at 70% . Of the P50 Million monthly collection , P42 Million goes to SMEC for power- generation and   Php8 Million goes to the National Grid Corporation (NGCC) for power distribution.

The Congressman added that the top 30 unpaid accounts amounting to millions pesos come mostly from Iriga City, but it was also noted that barangay governments in several municipalities have significant unpaid accounts, which have accumulated.

At the conference, former Iriga City Mayor Madelaine Alfelor Gazmen admitted that businesses run by their family have unpaid accounts with CASURECO III running into millions, but she claimed they are already paying based on restructured scheme.

She added that as former Mayor she is aware that CASURECO III has real estate tax liability with Iriga City government amounting to Php41 Million covering the years 1990 to 2008.

She said current Iriga City Mayor Ronald Felix Alfelor is now assessing how the said tax liability might be applied to the city’s unpaid accounts with the electric cooperative in a swap arrangement.

It was also reported that out of 66,000 consumers only 2,000 consumers are classified as commercial and agro- industrial who run up millions in power bills. The rest are residential and barangay government consumers.(SONNY SALES)